December 16, 2015

Summary of Earnings Results
for the Nineteenth Fiscal Period(From May 1, 2015 to October 31, 2015)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982, hereinafter “Top REIT”) hereby
announces its earnings results for the fiscal period ended October 31, 2015 (Nineteenth fiscal period).

1. Earnings Results for the Nineteenth Fiscal Period
Nineteenth Fiscal Period (19th FP): From May 1, 2015 to October 31, 2015
Eighteenth Fiscal Period (18th FP): From November 1, 2014 to April 30, 2015
(1) Business Results
Operating
Revenue
Period ended
Oct 31, 2015 (19th FP)
Apr 30, 2015 (18th FP)

Period ended
Oct 31, 2015 (19th FP)
Apr 30, 2015 (18th FP)

Period-on-Period
ChangeMillions of yen

Operating
IncomePeriod-on-Period
ChangeMillions of yen(4.4%)(3.1%)¥2,210¥2,472(10.6%)(3.6%)Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit

Ratio ofNet Income toUnitholders’Equity(8.6%)(6.3%)¥9,513¥10,408¥1,674¥1,831

Period-on-Period
ChangeMillions of yen¥5,368¥5,612Millions of yen

Ordinary
Income¥1,654¥1,891(12.6%)(3.3%)

Ratio ofRatio of
Ordinary Income
Ordinary Income
to Operating
to Total Assets
Revenue

Yen

1.8%
2.0%

0.9%
1.0%

30.8%
33.7%

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets

102.6%
93.0%

1.8%
1.8%

(Note) Net income per unit is rounded down to the nearest yen.

(2) Dividends
Dividend(excluding dividend in excess ofearnings)
Per Unit
Total
Period ended
Oct 31, 2015 (19th FP)
Apr 30, 2015 (18th FP)(Note 1)

(Note 2)

Yen

¥9,761¥9,680

Dividend in Excess of Earning
Per Unit

Millions of yen

Total
Yen

¥1,717¥1,703¥0¥0Millions of yen¥–¥–

Since a part of unappropriated retained earnings (126 million yen) and the correction amount of deferred tax liability (1 million yen) due to thechange in corporate tax rate following the tax system revisions in the fiscal year 2015, have been allocated as the reserve for reduction entry,
there are differences between Net Income and Total amount of Dividends as well as Dividend per Unit and Net Income per Unit for the Period
ended April 30, 2015.
Since the 43 million yen of reversal of reserve for reduction entry has been added to unappropriated retained earnings for dividends, there aredifferences between Net Income and Total amount of Dividends as well as Dividend per Unit and Net Income per Unit for the Period ended
October 31, 2015.

(3) Financial Position
Total Assets
As of
Oct 31, 2015 (19th FP)
Apr 30, 2015 (18th FP)

Millions of yen¥189,568¥189,737

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

49.0%
49.0%

¥528,278¥528,400

Millions of yen¥92,976¥92,998(Note) Net assets per unit are rounded down to the nearest yen.

1Yen

(4) Cash FlowsNet Cash
Provided by (Used in)Operating Activities
Period ended
Oct 31, 2015 (19th FP)
Apr 30, 2015 (18th FP)

Net Cash
Provided by (Used in)Investing Activities

Millions of yen¥2,715¥10,725

Net Cash
Provided by (Used in)
Financing Activities

Millions of yen

Cash and
Cash Equivalents
at End of Period

Millions of yen(¥317)(¥1,515)

Millions of yen(¥2,022)(¥11,719)¥6,220¥5,843

2. Earnings Forecasts for the Twentieth Fiscal Period
Twentieth Fiscal Period (20th FP): From November 1, 2015 to April 30, 2016
Operating
Revenue
Period ending
Apr 30, 2016 (20th FP)

Period ending
Apr 30, 2016 (20th FP)

Period-on-Period
ChangeMillions of yen

Operating
IncomePeriod-on-Period
ChangeMillions of yen¥2,264

1.0%

Net
IncomePeriod-on-Period
ChangeDividend per Unit
(excluding dividend in excess ofearnings)

4.1%¥9,900¥1,742

Period-on-Period
ChangeMillions of yen¥5,419

2.4%

Millions of yen

Ordinary
Income¥1,743

5.4%

Dividend in Excess of Earnings
per Unit

Yen

Yen

¥0

(Reference) Estimated net income per unit for the 20th FP: ¥9,900

3. Others(1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements of Revisions
a. Changes in accounting policies due to amended accounting standards: No
b. Changes in accounting policies due to other factors from a. above:Noc. Changes in accounting estimates:
Nod. Restatements of revisions:No(2) Number of Investment Units Issued and Outstanding
a. Number of investment units (including treasury investment units) issued and outstanding at the end of
fiscal period
As of October 31, 2015 (19th FP):
176,000 units
As of April 30, 2015 (18th FP):
176,000 units
b. Number of treasury investment units issued and outstanding at the end of fiscal period
As of October 31, 2015 (19th FP):
0 unitsth
As of April 30, 2015 (18 FP):
0 units* Statement on Implementation Status of Audit Procedure
This Summary of Earnings Results (“Kessan Tanshin” in Japanese) report is outside the scope of theauditing procedure under the Financial Instruments and Exchange Act. As of the publication of this report,
no auditing procedure under the Financial Instruments and Exchange Act has been completed for theearnings results.
* Explanation on the Appropriate Use of Earnings Forecasts, and Other Matters of Special Note
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by Top REIT. Accordingly,
the actual results may differ materially due to a variety of factors. Moreover, the forecasts should not be
construed as a guarantee of the dividend amount.
This Summary of Earnings Results is translated from the Japanese “Kessan Tanshin” report, dated December
16, 2015, which is prepared in accordance with generally accepted accounting principles in Japan andJapanese law.
Unless otherwise stated, fractions less than the specified unit are rounded down to the nearest specified unit formonetary amounts and rounded to the nearest specified unit for percentage figures.

24. Asset Management Performance(1) Operations during the Nineteenth Fiscal Period
A. Brief Background of Top REIT
Top REIT was founded on November 2, 2005 based on the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, as amended) with Top REIT Asset Management Co., Ltd. (the “AssetManager”) as the incorporator. On March 1, 2006, Top REIT was listed on the Real Estate Investment Trust
Section of the Tokyo Stock Exchange (TSE) (Securities Code: 8982) with the number of investment units
issued and outstanding totaling 145,500 units. As of the end of the 19th fiscal period (October 31, 2015), thetotal number of investment units issued and outstanding stood at 176,000 units as a result of the issuance ofadditional investment units through the third-party allotment (9,500 units) on March 23, 2006, the public
offering (20,000 units) on November 25, 2013, and the third-party allotment (1,000 units) on December 13,
2013.
Top REIT manages its portfolio with the aim of maximizing the investment value for its unitholders bysecuring stable revenues over the medium to long term and achieving steady growth of its portfolio. To doso, Top REIT focuses on the two strategies, “Skilled management of a diversified portfolio” and “Optimal
application of the sponsors’ strengths.” As of the end of the 19th fiscal period, its portfolio consisted of 20
properties with a total acquisition value of ¥190,484 million.
B. Investment Environment and Asset Management Performance<Investment Environment>(a)Economy in GeneralIn the 19th fiscal period, the Japanese economy was impacted in terms of exports and production by thedeceleration of emerging countries, but ongoing government economic policies and Bank of Japan
monetary easing measures led to strong corporate performance and corresponding improvement in theemployment and income environment continuing. The Japanese economy thus maintained a moderate
recovery trend.
While U.S. interest rate trends, resurgence of the European debt problem, China’s growth stagnation,
resource-rich countries’ economic trends and other risk factors that may impact the Japanese economy
require close monitoring, such factors as anticipated improvement in consumer sentiment associated withcompanies’ capital investment increase and households’ income increase against the backdrop ofdepreciation of the yen and high stock prices suggest that the moderate recovery will continue.
(b)Real Estate Leasing Market[Office Buildings]
The office leasing market remained steady, as evident by such factors as the vacancy rate continuing to
improve in not only Tokyo but also Osaka, Fukuoka and other major office districts, as well as ongoingincrease trend in rent, centering on excellent office buildings in central Tokyo. Based on continued
assumption of robust office demand buoyed by such factors as improvement in the employment
environment and corporate performance, the market as a whole is expected to continue to be on a moderate
recovery trend.
[Retail Properties]
Personal consumption is showing signs of gradual recovery and is thought to remain steady going forward,
backed by improvement in the employment and income environment. On an analysis by business category,strong showings are expected to continue for department stores in central Tokyo, which are expected tobenefit from growth in consumption driven by inbound tourism, and for food supermarkets and otherbusiness categories that target a small trade area, which are showing consecutive year-on-year increases inbusiness performance. Among large-scale general supermarkets, on the other hand, are stores struggling
with continuing year-on-year decreases in business performance. In this manner, the state of disparities
arising in business performance depending on the characteristics of individual retail properties is thought tocontinue.

3

[Residential Properties]
Rental residential property construction starts in the Tokyo metropolitan area is forecast to remain at a low
level due in part to soaring land acquisition costs and construction costs. With improvement in theemployment and income environment and other factors, the trend of population in-migration exceedingout-migration continues in the Tokyo metropolitan area and major urban areas of Japan. As such, thefavorable supply-demand environment is expected to continue for highly-competitive rental residential
properties that are excellent in terms of location and quality. The rental residential property market is thus
thought to see strong showings in both occupancy rate and rent.
(c) Real Estate Transaction Market
In the current real estate transaction market, a positive investment stance is maintained overall, centering
on not only J-REITs but also private placement funds, business corporations, overseas investors who
anticipate a full-fledged recovery of the Japanese economy and other investors. This has led to ongoing
capital inflow into the market continuing. On the other hand, with information on sale of excellent
properties being limited, competition over property acquisition is increasingly intensifying and transaction
prices are on an upward trend. While the expected cap rate of excellent office buildings in the“Marunouchi/ Otemachi District” have ceased falling in the 3.5% to 4.0% range, there are also survey
results that have shown that in other districts the expected cap rates have decreased slightly as before. With
investors’ appetite for real estate investment remaining strong against the backdrop of a favorable financing
environment, the downward trend of investment returns is seen to continue for the time being.
(d) Financial Market
The financial market in the 19th fiscal period saw both short-term and long-term interest rates remain at alow level against the backdrop of ongoing monetary easing measures by the Bank of Japan. The purchaseof Japanese government bonds by the Bank of Japan in an aim to achieve inflation rate of 2% based on“quantitative and qualitative monetary easing” is expected to continue. Therefore, the view is that interest
rate levels will remain low in a stable manner for the time being and a financing environment that isfavorable for also J-REITs will continue.
<Asset Management Performance >(a) Acquisition and Disposition of Assets
Top REIT began the 19th fiscal period with 20 properties (total acquisition value: ¥190,484 million). Withan aim to acquire highly-competitive and highly-profitable properties, Top REIT considered acquisition ofproperties through not only the “optimal application of the sponsors’ strengths” but also by utilizing
established information channels and its characteristics as a diversified REIT to collect and carefully selectfrom property sale information, with a focus on excellent office buildings located in central Tokyo at thecore, and also considered revision of the existing portfolio. There was no acquisition and disposition during
the 19th fiscal period, thus Top REIT’s portfolio remains unchanged from the end of previous fiscal year.
(b) Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT is sustaining and increasing revenue over the medium tolong term by maintaining and improving tenant satisfaction (the “Tenants First” policy) and keeping
operational management costs at an appropriate level. Top REIT strived to improve tenant satisfaction andmaintain and improve high occupancy rates while sustaining trusted relationships with tenants anddiscerning tenant needs via property management companies. During the 19th fiscal period, Top REIT
continued to focus on tenant solicitation activities for successor tenants of Kanda Nishiki-cho 3-chome
Building, which has been a pending issue. As a result, the occupancy rate reached 94.3% at the end of
October 2015.
Regarding maintenance, Top REIT followed up on ensuring that it had an appropriate grasp of theoperational management conditions and steady implementation of asset management plans for each
property. Based on asset management plans, Top REIT also carried out renovation and repairs that
contributed to enhancing the competitiveness of properties and maintaining and improving the functionalityof properties, and construction that contributed to improving tenant satisfaction. Top REIT also took steps
to keep relevant costs at an appropriate level and conducted efficient management of resources.
Furthermore, during the 19th fiscal period, with regard to one floor of Harumi Island Triton Square OfficeTower Y that had been used as a cafeteria for the employees of tenants, Top REIT commenced
construction and the first phase construction was completed. As of the date of this document the second
phase construction has also begun. The concerned construction is scheduled to be completed during the4fiscal period ending April 2016. In addition, the lease agreement has been already conducted for the leasing
space after the completion of the concerned construction.
C. Funding
Top REIT procures funds under a financial policy based on stable financial management. During the 19th
fiscal period, as the funds for the redemption of ¥8,500 million No. 1 Unsecured Investment Corporation
Bonds due on June 4, 2015, the same amount was financed using long-term loans. Top REIT worked on
spreading out the repayment dates by splitting the concerned long-term loans into ¥4,000 million(repayment date: May 29, 2020) and ¥4,500 million (repayment date: May 31, 2022). Furthermore,regarding the long-term loans of ¥4,251 million that was due on September 30, 2015, ¥4,000 million was
refinanced as of the same date with a long-term loan (repayment date: September 30, 2022) and theremaining ¥251 million was repaid using cash on hand. Regarding all of the long-term loans borrowed
during the 19th fiscal period, Top REIT fixed interest rates to be paid for the entire amount of therespective long-term loan through interest-rate swap transactions, thereby hedging against the risk ofinterest rate fluctuations. Using cash on hand, Top REIT also repaid ¥67.5 million in long-term loans on
June 30, 2015 as agreed upon.
As a result, at the end of the nineteenth fiscal period, the balance of interest-bearing liabilities amounts to¥90,279.5 million and the ratio of interest-bearing liabilities to total assets is 47.6%. Moreover, the ratio of
long-term interest-bearing liabilities (including the current portion) is 100.0%, while interest-bearing
liabilities with fixed interest rates account for 56.0%.
Top REIT conducted shelf registration for investment corporation bonds, as indicated below, in order tosecure flexible procurement of long-term funds.
[Overview of Shelf Registration]
Object of Shelf Registration
Investment corporation bonds(excluding short-term corporation bonds)

Amount to be Issued

Scheduled Period of Issue¥100,000 million

From May 20, 2014 to May 19, 2016

The credit rating of Top REIT as of October 31, 2015 is as follows:
Credit Rating Agency
Rating and Investment Information, Inc. (R&I)

Rating [Outlook]

Issuer rating: A+ [Negative]5

D. Earnings Results and Dividends
As a result of the asset management and operations described above, Top REIT recorded asset management
performance during the 19th fiscal period of ¥5,368 million in operating revenue, ¥2,210 million in
operating income and ¥1,654 million in ordinary income after deducting expenses concerning borrowings,
etc., and net income was ¥1,674 million.
As for dividends, with the aim of having an amount equivalent to profit dividends deducted as expenses
based on the application of the special provision on taxation of investment corporations (Article 67-15 of
the Act on Special Measures Concerning Taxation [Act No. 26 of 1957, as amended; hereinafter, the“Special Taxation Measures Act”]), Top REIT decided that the maximum value arrived at when thenumber of units issued and outstanding (176,000 units) is multiplied by an integer, within the limit of theamount arrived at by adding the ¥43 million reversed from the amount set aside as internal reserves as
reserve for reduction entry by applying the “Special Provisions for Taxation in the Event of Advance
Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation Measures Act) to theunappropriated retained earnings of the nineteenth fiscal period, would be paid out. Consequently, Top
REIT declared a dividend per investment unit of ¥9,761.
(2) Outlook for the next fiscal periods
A. Management Policy and Issues to be addressed(a) Management Strategy for Existing Properties
Top REIT will continue to follow its basic asset management strategy that centers on sustaining andincreasing revenue over the medium to long term by maintaining and improving tenant satisfaction (the“Tenants First” policy) and keeping operational management costs at an appropriate level. Under thisstrategy, Top REIT will focus on sustaining relationships of trust with tenants, leasing vacant spaces andsuch, as well as striving to maintain stable occupancy rates over the medium to long term.
Furthermore, Top REIT will also work to ensure an appropriate perception of the operational management
conditions for each property while steadily implementing such measures as to sustain and improve
revenues and keep operational management costs at an appropriate level. In addition, Top REIT will carryout systematic repair work and such to enhance the competitiveness of properties and to maintain andimprove the functionality of properties, in an aim to secure stable revenues over the medium to long term.
(b) Investment Strategy for New Properties
Top REIT aims to maintain or increase its dividends over the medium to long term by realizing external
growth through acquisition of new properties. Top REIT will continue to not only further utilize pipeline
support functions from sponsor companies, but also utilize various established information channels tocollect information on new properties based on detailed analysis of market environment of each asset
classes, while placing emphasis on primarily highly competitive office buildings. By doing so, Top REIT
aims to expand the portfolio size while improving its quality.
Furthermore, Top REIT makes it a management policy to keep the ratio of the investment amount perproperty at less than 20% of the entire portfolio as a target over the medium to long term. Going forward,
Top REIT will work to reduce the risk of concentration on specific properties by steadily advancing further
external growth.
(c) Financial Strategy
Top REIT will continue to implement diversified and flexible fund procurement operations in preparation
for acquisition of new properties and refinancing of existing loans, etc. While securing mobility andflexibility in fund procurement, Top REIT will work to reduce the risk of fund procurement by extending
borrowing periods and dispersing the repayment dates. At the same time, Top REIT will manage the risk ofinterest rate fluctuations by taking into account the balance of borrowings at floating and fixed interest
rates, as it discerns the interest rate trends. Moreover, financial soundness will be maintained by keeping
the leverage at an appropriate level.

6

(d) Compliance and Risk Management, etc.
In addition to the supervision of the Executive Officer by Supervisory Directors at the Board of Directors
meetings and other occasions, Top REIT will continue its direction and supervision on the Asset Manager
that it can conduct management operations with full care given to market risks, including rent decreases,
and credit risks as well as with a focus on the protection of unitholders’ interests in conducting transactions
with interested parties and on other compliance issues.
(e) Significant Subsequent Events
There are none applicable.

7B. Outlook for the 20th and 21st Fiscal Periods
The earnings forecasts for the 20th fiscal period (from November 1, 2015 to April 30, 2016) and the 21stfiscal period (from May 1, 2016 to October 31, 2016) are as follows:
Please refer to the next page for the assumptions of the earnings forecasts.
20th Fiscal Period

21st Fiscal Period(From Nov 1, 2015 to Apr 30, 2016)(From May 1, 2016 to Oct 31, 2016)

Operating Revenue¥5,419million¥5,390million

Operating Income¥2,264million¥2,230million

Ordinary Income¥1,743million¥1,743million

Net Income¥1,742million¥1,742million

Dividend per Unit
(excluding dividend in excess of earnings)¥9,900 (Note 2)¥9,900 (Note 2)

Dividend in Excess of Earnings per Unit

(Note 1)

(Note 2)¥0¥0The earnings forecasts represented above are the current estimated figures calculated basedon certain assumptions. Accordingly, the actual operating revenue, operating income,ordinary income, net income, dividend per unit and dividend in excess of earnings per unit
may vary due to changes in the circumstances. The forecasts should not be construed as aguarantee of the dividend amount.
With regard to the dividend per unit of the 20th and the 21st fiscal periods, it is assumed
that ¥201 million of internal reserve will not be reversed.

8Assumptions for Earnings Forecasts for the 20th Fiscal Period (from November 1, 2015 to April 30, 2016)
and the 21st Fiscal Period (from May 1, 2016 to October 31, 2016)
Item
Assumptions
 20th fiscal period: November 1, 2015 – April 30, 2016 (182 days)
Accounting
Period 21st fiscal period: May 1, 2016 – October 31, 2016 (184 days)
 It is assumed that portfolio assets will be the 20 properties Top REIT owns as of the date
Portfolio Assetsof this document. The actual circumstances may change depending on the acquisition or
disposal of other properties.
Number of It is assumed that the number of investment units issued and outstanding will be 176,000
Investment Units
units, which is the number as of the date of this document, and it is assumed that noIssued andissuance of new investment units will be made through October 31, 2016.
Outstanding It is assumed that the balance of interest-bearing liabilities is ¥90,279 million, which isthe amount as of October 31, 2015.
 For the 20th fiscal period, it is assumed that regarding the ¥19,527 million in loans due
for repayment on February 29, 2016, ¥27 million will be repaid using cash on hand andInterest-Bearing
the remaining ¥19,500 million will be refinanced. It is also assumed that, of long-term
Liabilities
loans, ¥67 million will be repaid on December 30, 2015 as agreed upon.
 For the 21st fiscal period, it is assumed that the ¥3,000 million in loans due forrepayment on October 31, 2016 will be fully refinanced. It is also assumed that, of longterm loans, ¥67 million will be repaid on June 30, 2016 as agreed upon.
 For rent revenue from existing properties, Top REIT takes into account the execution of
new lease agreements and cancellation of lease agreements that have been finalized andscheduled as of the date of this document, as well as such factors that may cause
fluctuations as risks associated with rent revision with tenants due for rent revision orcontract renewal, in light of recent real estate leasing market conditions.
Operating For Harumi Island Triton Square Office Tower Y, the second phase construction of the
Revenueconstruction work to convert one floor of it that had been used as a cafeteria for theemployees of tenants into office leasing space is scheduled to be completed during the20th fiscal period. It is assumed that the occupancy rate of the section converted into
office leasing space after the work has been completed will stand at 100% after the end of
April 2016 onward.
 With respect to property taxes, city planning taxes and depreciable asset taxes (the“property tax”), of the taxation amount assessed and determined, the amountcorresponding to the relevant period is accounted for as expenses related to rent business.
Of the amount paid for the acquisition of real estate or trust beneficiary interests in realestate, the amounts equivalent to the property tax will be capitalized as part of theacquisition costs of the relevant property instead of being charged as expenses.
 Property tax is assumed to be ¥611 million for the 20th fiscal period and ¥613 million forthe 21st fiscal period.
OperatingExpenses Depreciation and amortization is assumed to be ¥1,181 million for the 20th fiscal periodand ¥1,191 million for the 21st fiscal period.
 Repair expenses for buildings may vary greatly from the forecasted amount due tovarious reasons, including that emergency repair expenses may possibly arise due to
unexpected factors causing building damage and that repair expenses vary largely
depending on the fiscal period as they are expenses not accrued periodically.
 Management operation fees are assumed by considering historical data and the detail ofmanagement contracts.
 For the 20th fiscal period, non-operating expenses are assumed to be ¥522 million, of
which interest expenses on loans (including related expenses) are expected to be ¥512
million and amortization of investment unit issuance expenses is expected to be ¥6
Non-Operating
million.
Expenses For the 21st fiscal period, non-operating expenses are assumed to be ¥487 million, of
which interest expenses on loans (including related expenses) are expected to be ¥479
million and amortization of investment unit issuance expenses is expected to be ¥6
million.
9Dividend per
Unit(excluding dividend inexcess of earnings)

Dividend in
Excess ofEarnings per Unit

Other




Dividends (dividend per unit) are calculated based on the dividend policy stipulated in
Top REIT’s Articles of Incorporation.
For the 20th and the 21st fiscal periods, it is assumed that net income will be fully
distributed as dividends (excluding fractions).
For the 20th and the 21st fiscal periods, it is assumed that ¥201 million of internal reserve
will not be reversed.



Top REIT does not currently anticipate dividends in excess of earnings (dividend inexcess of earnings per unit).



It is assumed that there will be no changes in legislation, taxation, accounting standards,
listing regulations of Tokyo Stock Exchange, rules and requirements imposed by The
Investment Trusts Association, Japan that would impact the aforementioned forecasts.
It is assumed that there will be no unpredictable material changes in general economic
trends and real estate market conditions, etc.

10

5. Financial Statements(1) Balance Sheets(In thousands of yen)
18th Fiscal Period(as of April 30, 2015)

19th Fiscal Period(as of October 31, 2015)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right in trust
Other intangible assets in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

11

2,046,803
3,796,885
218,025
298,13715
13
6,359,881

2,638,085
3,582,056
301,141
296,248
12－
6,817,545

1,222,605(258,166)
964,439
5,559(3,550)2,009
20,309(13,177)
7,131
6,609
(3,050)3,559
5,209,643
66,198,127(17,863,648)
48,334,479
801,461(353,838)
447,622
310,592(204,492)
106,099
303,189(179,472)
123,717
127,651,793－
182,850,494

－
－
－
－
－
－
－
－
－
－
－
－
－
67,891,811(19,194,019)
48,697,792
807,020(375,210)
431,809316,304(236,392)
79,911
280,255(169,747)
110,508
132,862,108
101
182,182,231

7,348
1,650
21
9,019

7,348
1,376

10,000244,946
241,210496,157
183,355,671

10,000282,502254,532
547,034
182,737,990

1,837
20,03521,873
189,737,426

13,357
13,357
189,568,893

－

8,724

－

(In thousands of yen)
18th Fiscal Period(as of April 30, 2015)

19th Fiscal Period(as of October 31, 2015)

Liabilities
Current liabilities
352,904
8,500,000
23,913,000
231,359
103,139764
85,700704,242
3,711
33,894,820

22,662,000
236,463
69,315716
26,918729,644
1,591
24,257,106

58,185,000
170,568
4,373,971
72,34542,216

67,617,500－
4,631,266
55,28730,766

62,844,102
96,738,923

72,334,820
96,591,926

91,143,100

91,143,100

51,880180,113

Total Voluntary retained earnings
Unappropriated retained earnings (undisposed loss)

51,8801,832,069

180,113
1,674,520

Total surplus
Total unitholders’ equity

1,883,949
93,027,049

1,854,633
92,997,733(28,546)(20,767)(28,546)
92,998,503(20,767)
92,976,966

189,737,426

189,568,893

Operating accounts payable
Current portion of Investment corporation bondCurrent portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities

530,455－

Noncurrent liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry

Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

12(2) Statements of Income(In thousands of yen)
18th Fiscal Period

19th Fiscal Period(November 1, 2014 –April 30, 2015)(May 1, 2015 –October 31, 2015)

Operating revenue
Rent revenue – real estate

5,283,814

5,220,477

Other lease business revenue

31,369147,738

Gain on sales of real estate properties

297,259－

5,612,443

5,368,215

2,630,481

2,673,458

341,711341,201

Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee

8,622

8,515

Administrative service fees

67,447

66,764

Directors’ compensations

6,300

6,300

Audit fee

10,00012,600

Other operating expenses

75,82848,6653,140,392

3,157,505

2,472,051

2,210,709

1,025

844

Reversal of dividends payable

611

452

Insurance income

424

－

2,061

1,297

Interest expenses

355,378

377,898

Interest expense on investment corporation bonds

42,034

8,267

Amortization of investment corporation bond issuance costs

5,511

1,837

170,089

151,582

6,678

6,678

Total operating expenses
Operating income
Non-operating income
Interest income

Total non-operating income
Non-operating expenses

Borrowing related expenses
Amortization of investment unit issuance expenses

2,440

11,283582,133

557,548

Ordinary income

1,891,979

1,654,459

Income before income taxes

1,891,979

1,654,459

Income taxes – current

944

864

Income taxes – deferred

59,068(20,768)

Total income taxes

60,013(19,904)

1,831,965

1,674,363

103

156
1,674,520

Other
Total non-operating expenses

Net income
Retained earnings brought forward

1,832,069

Unappropriated retained earnings (undisposed loss)13

(3) Statements of Changes in Net Assets (Unitholders’ Equity)
For the period from November 1, 2014 to April 30, 2015 (18th fiscal period)(In thousands of yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

91,143,100

Voluntary retained earnings
Total
Reserve for
Voluntary
reduction entry
retainedearnings

Total surplus

Totalunitholders’equity51,87351,873

1,954,943

2,006,816

93,149,916

7

7

(7)

－

－

(1,954,832)(1,954,832)(1,954,832)

1,831,965

1,831,965

1,831,965－

7

7(122,874)(122,866)(122,866)

91,143,100

51,88051,8801,832,069

1,883,949

93,027,049

Valuation and translation
adjustments

Balance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

Unappropriatedretainedearnings(undisposed
loss)

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments(29,195)(29,195)

Total net
assets93,120,720－(1,954,832)
1,831,965
649

649

649

649

649

(122,216)(28,546)(28,546)

92,998,503

14

For the period from May 1, 2015 to October 31, 2015 (19th fiscal period)(In thousands of yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

91,143,100

Voluntary retained earnings
Total
Reserve for
Voluntary
reduction entry
retainedearnings

Total surplus

Totalunitholders’equity51,88051,8801,832,069

1,883,949

93,027,049

128,233

128,233(128,233)－－(1,703,680)(1,703,680)(1,703,680)

1,674,363

1,674,363

1,674,363－

128,233

128,233(157,549)(29,316)(29,316)

91,143,100

180,113180,113

1,674,520

1,854,633

92,997,733

Valuation and translation
adjustments

Balance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

Unappropriatedretainedearnings(undisposed
loss)

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments(28,546)(28,546)

Total net
assets

92,998,503－(1,703,680)
1,674,363
7,778

7,778

7,778

7,778

7,778

(21,537)(20,767)(20,767)

92,976,966

15

(4) Statements of Cash Distributions

I. Unappropriated retained earnings

18th Fiscal Period
from November 1, 2014
to April 30, 2015

19th Fiscal Period
from May 1, 2015
to October 31, 2015

Amount (yen)(Note 1)

Amount (yen)(Note 2)

1,832,069,089

1,674,520,004－

43,517,328

1,703,680,000

1,717,936,000<9,680><9,761>

128,233,041－

156,048

101,332

II. Voluntary retained earnings
Reversal of reserve for reduction entry
III. Total Amount of Dividends<Dividend per unit>
IV. Voluntary retained earnings
Reserve for reduction entry
V. Retained earnings brought forward(Note1)(Note2)

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the total
amount of dividends is limited to the amount of income. The article also stipulates the policy that “Top REIT shall
distribute an amount in excess of 90% of its distributable profits as stipulated in Article 67-15 of the “Act on Special
Measures Concerning Taxation.” Based on these policies, Top REIT decided on a total distribution of 1,703,680,000
yen as distribution of income for the period. This is the maximum value arrived at when the number of units issued
and outstanding (176,000 units) is multiplied by an integer, which does not exceed the unappropriated retained
earnings of the 18th fiscal period, after deducting both (1) the amount of deferred tax liabilities adjusted to reflect thechange in tax rate, (2) the amount of retained earnings brought forward pursuant to Article 66-2 of the “Special
Taxation Measures Act of Japan” which would be transferred to the reserve for reduction entry.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.
Based on the policy that “Top REIT shall distribute an amount in excess of 90% of its distributable profits as
stipulated in Article 67-15 of the “Act on Special Measures Concerning Taxation”, Top REIT decided on a total
distribution of 1,717,936,000 yen as distribution of income for the period in accordance with the “cash distribution
policy” stipulated in Article 34 of the Articles of Incorporation. This is the maximum value arrived at when thenumber of units issued and outstanding (176,000 units) is multiplied by an integer, which does not exceed the sum of
the unappropriated retained earnings and the amount of reversal of reserve for reduction entry of the 19th fiscal
period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.

16

(5) Statements of Cash Flows(In thousands of yen)
18th Fiscal Period(November 1, 2014 –April 30, 2015)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of trademark
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income and interest on securities
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease in property, plant and equipment in trust due to disposal
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
Subtotal

19th Fiscal Period(May 1, 2015 –October 31, 2015)

1,891,979
1,186,513
21
5,511
6,678
(1,025)
397,412
1,382
62,617
7,734,728(5,696)(25,453)(138,262)(97,646)
127,083(16,236)
11,129,607

1,654,459
1,185,199
21
1,837
6,678
(844)
386,165(83,116)
1,888－
12,3495,104(58,781)
25,402(37,556)
37,045
3,135,853

1,025(404,780)(851)
10,725,000

844(419,945)(911)
2,715,840

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities(388,632)(245,384)
43,239(100)
285,796(1,210,483)(1,515,565)(4,739)(399,193)
965－
125,720(39,959)(317,207)

Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of investment corporation bonds
Dividend paid
Net cash provided by (used in) financing activities－(9,764,500)－(1,954,832)(11,719,332)

12,500,000(4,318,500)(8,500,000)(1,703,680)(2,022,180)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(2,509,897)
8,353,586

376,452
5,843,689

Cash and cash equivalents at end of period

5,843,689

6,220,142

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

176. Portfolio Data
As of October 31, 2015
Asset Class

Area

Central Tokyo
OfficeBuilding

Property Name

Acquisition
Price

Appraisal Value at
End of Period

NEC Head Office Building
Harumi Island Triton Square Office Tower Y
Akasaka Oji Building
Shiba-Koen Building
Harumi Island Triton Square Office Tower Z
Kanda Nishiki-cho 3-chome Building
Shinkawa Chuo Building
Shinjuku EAST Building
Ginza Oji Building(million yen)
41,95033,0009,660
6,145
20,00012,700
5,610
5,800
2,000

(million yen)
54,50027,2009,610
4,260
12,300
8,430
6,310
6,690
2,160

Investment
Breakdown(Note)
(%)
30.9
15.4
5.4
2.4
7.0
4.8
3.6
3.8
1.2

Tokyo
Faret East Building
2,091
2,720
1.5
Metropolitan Area
Subtotal (10 properties)
138,956
134,180
76.0
Sagamihara Shopping Center
12,0009,070
5.1
Ito-Yokado Higashi-Narashino Store
8,900
3,990
2.3
Tokyo
Metropolitan Area Musashiurawa Shopping Square
4,335
4,140
2.3
RetailKojima ×Bic Camera Kashiwa Store
4,500
4,930
2.8
Property
Other
MEL Building
1,210
1,340
0.8
Major Cities
Subtotal (5 properties)
30,94523,470
13.3
Central Tokyo
Top Residence Nihonbashi Kayabacho
2,400
2,860
1.6
Fukasawa House Towers H&I
10,6357,810
4.4
EcologyToyosuProcentury
5,160
5,500
3.1
Residential Tokyo
Property
Metropolitan Area Impress Musashi-Koganei
1,223
1,370
0.8
Top Residence Yoga
1,165
1,300
0.7
Subtotal (5 properties)
20,583
18,840
10.7
Total (20 properties)
190,484
176,490100.0(Note) The investment breakdown is the ratio of the appraisal value at the end of the period for the applicable property or the applicable
asset class to the sum total of the appraisal value at the end of the period for all properties in the portfolio and is rounded to thefirst decimal place.

18

For more information, please visit our website http://www.top-reit.co.jp/english/
Contact for inquiries in Japanese:
Top REIT Asset Management Co., Ltd.
Mitsuru Akashi, Director, General Manager, Finance Department+81-3-3243-2181
Contact for inquiries in English:
Top REIT Asset Management Co., Ltd.
E-mail address: info-top@top-reit-am.co.jp

DISCLAIMER:
Top REIT, Inc. makes no assurance or warranty with respect to the completeness or accuracy of this English
translation. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail. For complete and accurate information, please refer to the Japanese original.

19